Today I’m writing about Prudential’s Asset Allocation tool, and how it amazed me.
If you don’t know what an asset allocation quiz is, it’s a tool that financial intuitions created to provide advice on how to invest. These tools are often designed as a series of short questions about your investment horizon, risk tolerance and investment goals. Based on how you answer the questions, the tool will tell you how you should allocate your investments.
Up until now, I always considered these tools to be worthless. I know a fair amount about investing, and the results I got from these were always too conservative.
I’ve taken a number of these quizzes over the last 15 years. No matter what the quiz, I never agreed with the results. In fact, I used to take them just to see how bad the advice was. Continue reading “Prudential’s Asset Allocation Quiz is Amazing”
Update: I exited my position in BAC on March 22nd, 2017 after it was obvious that the GOP was struggling to pass healthcare reform. Two days later, congress said they would not vote on this issue as they did not have enough support to pass their bill.
This is significant. Two reasons I took this position was due to Trump’s campaign promises of repealing/changing Dodd-Frank and corporate tax reform. Not only are Trump’s campaign promises questionable, but his failure in reforming Obamacare (which was a day one issue for him) makes me think that he could struggle to accomplish most of his agenda. That said, I no longer think this is a great investment opportunity, especially at the March 22 price point (which was significantly higher than when I originally recommended this investment) .
The original post is below:
There are a few times in the life of an investor when the stars align and you find a trade that you’re confident will earn nice return. I’m 38 years old, and I’ve been investing since I was 18. This trade is only the second time in my life that I feel I found an investment that will easily outperform the S&P 500 over next several years.
Bank of America is positioned very well for 2017 and beyond. Below I outline seven reasons why this stock is a good buy heading into the new year. Continue reading “Seven Reasons To Invest In Bank Of America Heading In 2017”
A couple of days after Donald Trump was elected President of the United States, his transition team announced that it plans to “dismantle the Dodd-Frank Act”. If accomplished, this will be a big win for the Big Banks. Continue reading “It’s The Big Banks Time To Shine”
11/9/16 Update: What a wild ride. Global markets dropped sharply overnight once it started to look like Trump was going to win the election, but by the US opening bell, everything had recovered. The S&P 500 closed today up over 1%, and I exited my position in SVXY making $1.06 after commissions. This was the strangest dollar I’ve ever earned. Continue reading “Trading the 2016 US Presidential Election”
Below are a couple of long-term financial predictions that I’m making on the stock market and gold. In short, the stock market will go on a decade long bull run and precious metals will move sideways. Continue reading “Bold predictions”